Two more Michigan communities are in financial emergencies, the state Department of Treasury announced Friday afternoon.

The financial review teams’ findings for Royal Oak Township and Highland Park trigger a 10-day window in which Gov. Rick Snyder must determine whether he agrees or disagrees with the review teams’ opinions.

If Snyder confirms the communities are in financial emergencies, the township board and city council must select whether to proceed with a consent agreement, an emergency manager, a neutral evaluation or Chapter 9 municipal bankruptcy, under the provisions of Public Act 436 of 2012, the state’s emergency manager law.

According to a Department of Treasury news release, Royal Oak Township’s year-end balance in its governmental funds decreased from $200,324 at the end of 2011 to a deficit of nearly $300,000 at the end of 2012, a $500,000 swing caused by operating deficits.

In addition, in the last three fiscal years, the township’s audited budgets show variances between revenue and expenditures, as budgeted and amended, than what were actually realized, according to the news release.

The township has also not adopted a Fiscal Year 2014 budget, as required by law, and has not been able to consistently meet contractual obligations for public safety services provided by the city of Ferndale (fire services) and the Oakland County Sheriff’s Department (police services), according to the release.

In Highland Park, the city’s water and sewer fund’s negative fund balance ballooned from $5.5 million at the end of the 2012 fiscal year to $12.5 million at the end of the 2013 fiscal year, according to the Treasury Department release. The fund lost $7.7 million during FY 2013, but the city transferred $770,000 from its general fund to partially plug the hole. Timely and accurate water and sewer bills have not been issued to city residents.

The city also had $4 million in unbudgeted expenditures in the 2012 fiscal year, and as of Oct. 31, the city owed about $19.5 million to various venders, including $18.2 million to the city of Detroit for water and sewer services, according to the release.

It also owed $311,000 to DTE Energy Co.; $270,000 to Wayne County for property assessing and prisoner maintenance; $106,000 to the city of Hamtramck for city income tax collection and administration; and $101,000 to the state of Michigan in principal and interest on emergency loans, the release said.

The five-member review teams were appointed Dec. 2 and held meetings with Royal Oak Township and Highland Park officials and residents since then.